TRYNESS TEMBO, Lusaka
PUMA Energy Zambia Plc says the country’s economy is displaying positive signs of recovery which will boost the firm’s sales volume going forward.
The economy is showing positive signs due to various economic fundamentals such as the single digit inflation, which is at 6.3 percent and stable Kwacha trading around K9.10 and K9.20 on the bid and offer, respectively, among others.
This is contained in the Puma Energy Zambia plc’s interim results for first half of 2017 issued by company secretary Kalunga Lutato.
“Despite the down turn in fuel consumption in the industry, we foresee a continued recovery in sales volumes as a result of the country’s economy, which has started showing positive signs of recovery,” the report reads.
The company notes that with its strong investment drive, coupled with close monitoring of its operating costs and other strategic initiatives put in place, it is confident that it will remain a key player in the energy sector.
Mr Lutato, however, said the firm witnessed reduced customer consumption although there was an increase in revenue by 2.5 percent in the half of year from almost K1.58 million in the same period last year to over K1.62 million.
But the volumes were 12.6 percent lower than those achieved for the same period last year due to a general down turn in the industry as a result of reduced customer consumption.
“Volumes for the year under review came under pressure largely owing to some downturns in our key wholesale business line, in particular mining customers, but also the aviation and retail business lines, which posted declines mainly as a result of overall decrease in the industry performance compared to the same period last year,” the report reads.
During the period under review, the company continued to invest in its capital projects with K14.8 million invested from year-to-date.
The company says investment in capital projects may significantly, increase in the third and fourth quarters as the liquidity position improves.